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Re:Google Scribe - Get autocomplete suggestions as you type by apike on Tuesday September 07, 2010 @02:55PM (#1669738)
Indeed. The first sentence it generated for me was not a Markovian nonsense phrase, but rather a phrase that appears on a very large number of web pages: "The following content has been identified by the YouTube community as being potentially offensive or inappropriate." This gives some insight into their seed data.
Re:Google Scribe - Get autocomplete suggestions as you type by what on Tuesday September 07, 2010 @03:12PM (#1669789)
Their seed data is probably the n-gram dataset that they released (or maybe a more recent one):

http://googleresearch.blogspot.com/2006/08/all-our-n-gram-ar...

Microsoft also has an n-gram dataset that you can access through a web service:

http://web-ngram.research.microsoft.com/info/